CARES Act Sec. 2301 provides a refundable payroll tax credit for 50% of qualified wages (and allocable qualified health plan costs) paid by eligible employers to certain employees during the COVID-19 crisis.
- Organizations exempt from tax under IRC Sec. 501(a) may be eligible employers.
- Governmental employers are not eligible employers for this credit.
- Self-employed individuals are not eligible for this credit for their own self-employment earnings (but may be eligible for wages paid to employees).
The credit is not available to employers receiving PPP loans under Sec. 1102 of the CARES Act.
However, an employer that applied for a PPP loan, received payment, and repaid the loan by May 18, 2020 will be treated as though the employer had not received a covered loan under the PPP for purposes of the employee retention credit. (#79)
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https://www.irs.gov/newsroom/faqs-employee-retention-credit-under-the-cares-act